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Ep 397. The Financial History of GEICO with Capital Allocation Author, Jacob McDonough

Focused Compounding

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The Dangers of Growing Fast

The danger with an insurance company and with a bank that's growing fast or something like that Is a lot of the business is actually new and it can go bad really fast. And so some of the things that might keep someone like buffet away from geico when he's looking at it Sure is the rule of thumb that he talks about that he did some rules of thumb in terms of looking at them under reserving Right, but it also can be talking to the people and realizing that they're moving way too slow on this and that they aren't taking it seriously enough.

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